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Bank of England keeps rates but warns on 25% contraction ahead

The bank said its latest forecasts are an illustration of what might happen based on available data so far rather than a firm prediction

The Bank of England said it expects the UK economy to shrink by around 25% in the second quarter as it reels from the effects of the new coronavirus.

The UK central bank’s Monetary Policy Committee agreed at its May meeting to leave the BoE’s benchmark interest rate unchanged at 0.1% and the size of its bond-buying program at £645bn ($798bn), the central bank said in a statement Thursday.

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